Kames' Snowden: Why bond bears' argument is ‘bogus'

Kames' Stephen Snowden has said the bond bears' argument that normalising US and UK monetary policy will be the death knell for fixed income is unfounded.

The co-manager of the £765m Kames Investment Grade Bond took issue with a common criticism of bonds that central banks and regulators have created a precarious environment by pumping cheap money into the financial system. Snowden (pictured) disagreed with claims the impact of the imminent withdrawal of US QE will be detrimental for bonds. He said: “Bond bears say the supply of money will fall as central banks withdraw QE, but this argument is bogus. The size of the financial sector has contracted massively since the financial crisis, and banks have withdrawn loans much faster than QE has...